Priscilla's Bronxville Real Estate Blog

Do you remember the last credit card you signed up for? More importantly, do you remember the actual contract? While credit card agreements outline such essential information as costs, features, and terms of the product, they are often long, complicated, and written in legalese. Unfortunately, key information about interest rates, fees, billing, and payments is often surrounded by legal fine print.

That’s why the Consumer Financial Protection Bureau (CFPB) launched the Know Before You Owe project, a program designed to provide better consumer transparency in several areas, such as credit card agreements, so that consumers could have a better understanding of the prices, risks, and terms involved before signing on the dotted line.

According to the CFPB, there are an estimated 514 million credit cards in circulation in the United States. Americans used their credit cards to spend an estimated $1.9 trillion in 2010, and credit card debt is estimated at $700 billion dollars. The CARD Act, which was signed into law more than two years ago, was passed to make credit card costs more reliable—with less risk of unexpected rate increases or other charges.

But despite this progress, a recent study by J.D. Power found that roughly two-thirds of cardholders say they don’t completely understand how their cards work. And, as indicated in a recent CFPB report on credit card complaints received by the Bureau from July 21 to October 21, 2011, difficulty understanding the terms of their cards is a contributing factor in many consumer complaints.

With this in mind, the CFPB has created a prototype credit card agreement that is shorter, written in plain language, and explains key features upfront. This prototype is scheduled to be tested with the Pentagon Federal Credit Union to get on-the-ground consumer feedback before it becomes official.

Here are the four key improvements the CFPB prototype offers:
•Shorter: The CFPB’s prototype is shorter – its word count is about 1,100 words, while the industry average for a credit card agreement is around 5,000 words.
•Clearer: The draft credit card agreement has an easy-to-read layout and is written in plain language. It is organized into three simple sections: costs, changes, and additional information.
•More consumer-friendly: The simplified agreement explains the prices, risks, and features of the credit card upfront, as opposed to burying it in fine print.
•Consistency: The prototype establishes standard definitions for legal terms like “card” and “balance transfer” that are contractually necessary but largely uninformative to consumers. These definitions are based on standard industry usage and practices and will be housed online where consumers can readily access them. For consumers who do not have Internet access, the definitions will be available from their issuer in printed form. According to the CFPB, doing this allows for a plain language document that clearly explains to consumers how the credit card works.
For more information about Know Before You Owe, and to view a copy of the prototype credit card agreement and the database, visit www.consumerfinance.gov.

If you’re struggling with medical costs and trying to find a solution to your health insurance woes, you’re not alone. Roughly half of all bankruptcies filed in the United States are caused by illness and medical bills, and there are still 46.6 million Americans without health insurance.
While it’s easy to become overwhelmed by health insurance issues, attacking the problem is critical to not only your personal health but your financial health as well. Journalist, author and “Today Show” commentator, Jean Chatzky (jeanchatzky.com), offers the following great suggestions for choosing the right health insurance plan and preventing costs from escalating:
1.Check state regulations. Insurance plans and prices vary widely by state, so begin by investigating your state’s insurance website. Look for lists of companies in your area, prices for various types of plans, and lower-cost options based on income requirements.
2.Decide what’s important. Make a list of what matters most to you, i.e., low premiums, the ability to see certain doctors, coverage for special services, etc. The plan you ultimately choose should accommodate your insurance priorities.
3.Find an insurance broker you can trust. Finding a top-notch insurance broker is critical as he or she can do the legwork to find the right insurance company, help shop for the best rates, and explain the ins and outs of your plan, says Chatzky. Check a candidate’s credentials through either the National Association of Insurance Underwriters (nahu.org) or the National Association of Insurance Commissioners (naic.org). Make sure the broker you choose has a large “book,” the industry term for the network of providers he or she works with. The more options, the better.
4.Ask for a trial run. Believe it or not, you might be able to “try out” an insurance plan before committing to it—this is called a “free look,” says Chatzky, and means you can get a refund if you’re not satisfied after a certain period of time. Follow the guidelines so you don’t overlook any loopholes in a free-look option, and be sure to get the details in writing.
5.Open a Health Savings Account (HSA). An HSA is a great option for those choosing a high deductible/low premium plan as it allows you to deposit pre-tax dollars into a special savings account for medical expenses, where it will grow tax-deferred. Once you turn 65, you can withdraw any remaining money and use it however you want, including to fund your retirement.
6.Be ready to negotiate. While you may have spent a lot of time researching and choosing your plan, unexpected bills will most likely continue to pop up. Talk to your insurer about the right protocol for negotiating such bills. And don’t be afraid to negotiate with your doctor if you’re paying out of pocket, Chatzky advises. In a recent Harris Interactive poll, three out of five people who did so received a discount. With the cost of a single visit often tallying over $200, it’s definitely worth a try.

Adapting your insurance coverage to the life stages as you go through them is critical to your future. Insurance is a necessary part of life—it helps provide us with important peace of mind and financial security. Here are some key insurance stages to be aware of from the Federal Citizen Information Center:

Teen and College Years. A new driver’s license in the household calls for additional auto insurance. Coverage is cheapest for teens added to the family’s policy. Full-time students are generally covered by family health policies until age 23 or graduated, but check with your company to see if supplemental coverage is needed. The same is true for personal property insurance. Students living at home or on campus are covered by the family’s policy, but students living in off-campus housing may require renter’s insurance to cover personal property.

Married and Starting a Family. Merging two households and two careers means reconsidering insurance needs. Most people get health insurance through their employers. If there is a choice, compare costs, coverage and co-pays and choose the best option. Married people generally get lower auto insurance rates than single people, so check with your company to see if you qualify. If you buy a home, you will need homeowner’s insurance, and make sure it keeps pace with your growing family. Once children arrive, it is time to purchase life insurance. Look into the various term (death benefit only) policies and cash value insurance before you decide on coverage. Finally, middle age is the most cost-effective time to look into long-term care insurance.

Senior Years. Most auto insurance companies give discounts to adults up to age 70. As rates rise, have frequent eye and health exams to decide when or whether you may wish to stop driving. Also, some states offer discounts to seniors who take special senior driving courses. As for home insurance, you need to maintain fire, theft and natural disaster coverage even if you have paid off the mortgage. Retirees can still get life insurance, but should expect to pay more for it, and premiums will go up as term policies come up for renewal. Premiums must continue to be paid for cash-value policies. As for health insurance, anyone enrolled in Social Security is automatically signed up for Medicare, but you may need to buy supplemental Medicare insurance if you are no longer covered by a group policy. Finally, if you have long-term care insurance, benefits kick in only if you have lost the ability to perform at least two activities of daily living, such as bathing, dressing, mobility or continence.

How secure is your home when you are away? With the official start of the summer season here, homeowners everywhere are beginning to anticipate the longer days, warmer weather and family vacations that define the season. As a Member of the Top 5 in Real Estate Network®, I understand the importance of keeping your home safe and secure—whether you are at the office or out of town.
The following home security system tips from alarm.com will not only keep your house safe during the summer travel season, but also offer peace of mind for homeowners looking to protect the largest purchase they will most likely ever make.
1. Make yourself at home. Set up motion sensors throughout the home to communicate all activity. Even if the security system is disarmed, you can still find out what’s going on at home. Interactive security systems can keep track of both alarm and non-alarm events making it easy to find out when the kids get home from school, when the delivery truck arrives or when the cleaning crew leaves.

2. Put security in your pocket. Homeowners constantly on-the-go rely on their cell phones to regularly check in with people who matter to them. Checking in on your home is no different. Simply download a free mobile app to control the security system and monitor the home when on-the-go. Today, security apps for iPhone, BlackBerry or Android devices enable arming and disarming of the security system from afar and also the ability to watch live or recorded video footage from security cameras while away from home.

3. See your way to safety. A security system can truly become a window to your world. To watch over the house while away, use any smartphone or computer with access to the Internet to manage and monitor video surveillance cameras. Even view live video of your kids playing in the basement or save clips of visitors at the front door to know who came to the house. Control your camera settings right from a cell phone and, when video footage is recorded in important areas, receive clips via email and text message to stay aware of what’s happening at home.

4. Use your security system to stay informed. No matter where you are, stay connected to home with a wireless home security system. Set up custom email and text message alerts to stay informed about events that matter to you. Be alerted whenever the security system is armed or disarmed. Or find out about a power failure or a water leak in the basement before it’s too late.

5. Make your security system even smarter. There are endless ways to use a security system to protect your home. With home energy management features integrated into the system, lights can automatically turn off when you leave for the day. An integrated home automation solution will allow you to lock all the doors in just one click when the security system is armed, turn down the thermostats according to daily routines and assist in setting up personalized user codes for any visitors who come to the house when you’re away.

While the holidays should be a joyous time for all, unfortunately, financial pressures can make this time of the year stressful and depressing for many. There are countless ways, however, to stop holiday spending from spiraling out of control in order to get back to the true meaning of the season.

As a Member of the Top 5 in Real Estate Network®, I often play the role of financial advisor to many clients. After all, owning a home is most likely the biggest investment you’ll make, so being prudent regarding spending is a must … especially in today’s economy.There are many great organizations out there that offer wonderful advice on managing your finances, such as The Homeownership Preservation Foundation (HPF), a nonprofit entity dedicated to helping distressed homeowners navigate financial challenges (www.995hope.org). HPF offers the following great tips for curbing holiday spending:

The number-one rule of financial management is creating a budget and the holidays are no exception. Instead of just random spending, create a detailed budget for gifts, travel, entertaining, cards, decorating, etc. Create a budget for each person on your shopping list and don’t go over it.

1. Stick to this budget by only taking cash, not credit cards, with you when you shop. This will help you avoid impulse purchases.
2. Avoid the expense of the office grab bag or Yankee swap by suggesting your employer make a donation to a local charity instead; ask employees to contribute gently used clothing, canned goods, winter coats, etc. This will not only save everyone money but emphasizes the true spirit of the season.
3. If this is your first year in a new home, don’t feel pressured to invest in a full set of ornaments for your tree. Collect those gradually over the years and, in the meantime, decorate with paper snowflakes, popcorn and cranberry garlands, spraypainted pine cones, and other homemade ornaments. The effect will be charming and memorable for years to come.
4. Streamline the preparations and costs of your holiday get-togethers by sticking to appetizers only. Ask everyone to bring an hors d’oeuvre and serve beer and wine only.

Not only will the above tips help you spend less, but they will help eliminate many of the common stresses that accompany the holiday so that you can truly enjoy the season with family and friends. Feel free to contact me via e-mail for more cost-saving ideas and please forward this information to others … after all, we could all benefit from spending less this year!

My personal reading list should remind me how much I love a good story, and always have. Years ago, when my daughters had an opportunity to take a summer camp class in story telling, they signed right up and loved it. The teacher was Master Storyteller Jonathan Kruk, and after that summer, we went to hear him whenever we could, and even had him come to birthday parties to tell stories to my daughters’ guests.

That very same Jonathan Kruk will be spinning his entrancing yarns at “Legends and Lore of the Little People”  telling stories starring leprechauns, elfs and trolls on Saturday, October 2 at the Ward Pond Ridge Reservation at the intersection of Routes 35 and 121 in Cross River. He will be performing again on October 15-16 and 29-30  when he will tell The Legend of Sleepy Hollow by Washington Irving at the Old Dutch Church across from Phillipsburg Manor in Sleepy Hollow as part of the Historic Hudson Valley Halloween 2010. For more information about Jonathan Kruk’s Legend please visit: http://www.hudsonvalley.org/content/view/388/327/